Millions of households are set to receive support through two new types of cost of living assistance soon. In April 2026, the Crisis and Resilience Fund will be introduced to provide cash aid, rent assistance, food vouchers, and more to struggling households, replacing the expiring Household Support Fund.
Under the Crisis and Resilience Fund, two distinct payments will be available. The Crisis Payment, designed for individuals facing crisis situations, will have flexible eligibility criteria determined by local councils. This approach could lead to varying levels of assistance based on location, similar to the current Household Support Fund system.
Recent guidelines from the Department for Work and Pensions (DWP) emphasize that the Crisis Payment should not be restricted to benefit recipients only. Councils are encouraged to prioritize individuals experiencing sudden financial shocks or those at risk of financial instability.
Crisis Payment schemes are encouraged to prioritize cash-based assistance, including cash, bank transfers, and vouchers, with an application-based process. Additionally, councils may opt to provide essential items like appliances in certain cases. Some councils might also choose to offer food vouchers to parents of children eligible for free school meals during the summer.
The fund will also introduce a new Housing Payment to replace the current Discretionary Housing Payment, aiding with rental-related expenses such as advance rent, deposits, and relocation costs. Eligibility for the Housing Payment requires receiving Housing Benefit or Universal Credit with housing cost support. Payments may be retroactive, and the duration of the support will be at the council’s discretion.
Payment disbursements may involve third parties such as landlords, estate agents, or appointees when appropriate. A government spokesperson highlighted the commitment to combating poverty and enhancing financial security for families through the £1 billion Crisis and Resilience fund, providing local authorities with the resources to offer emergency financial assistance.
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